Iran war keeps Middle East skies closed as Cathay Pacific fares surge 93% on average

A week of US-Israeli attacks on Iran and retaliatory strikes into Gulf states has kept much of the Middle East’s airspace closed, driving global airfare surges as airlines reroute flights. This ongoing crisis, following initial disruptions to Gulf hubs like Dubai, has hit Cathay Pacific hardest, with an SCMP analysis showing average 93% jumps in fares to Hong Kong from 57 destinations worldwide.

US-Israeli attacks on Iran and retaliatory strikes spilling into neighbouring Gulf states have forced much of the Middle East’s airspace to remain closed for over a week. Airlines and passengers continue to divert and rebook, pushing fares higher globally.

An SCMP reporter tracked the earliest available direct Cathay Pacific flights from 57 destinations in Europe, Asia-Pacific, the Americas and Africa—excluding Middle East, mainland China and Taiwan routes. The average cheapest ticket price for Saturday departures has surged 93 per cent compared with the upper range of typical prices over the past 12 months, per Google Flights data.

European routes saw the biggest spikes. No one-way economy tickets were available, but business-class on Cathay’s London-Hong Kong flight for Saturday cost HK$53,486 (US$6,837)—over 600 per cent above the usual HK$7,400. Madrid followed at HK$51,258 (US$6,553) for business class, about 500 per cent more than the typical HK$8,500.

This underscores how the protracted geopolitical tensions are inflating travel costs worldwide amid persistent airspace restrictions.

Makala yanayohusiana

Cathay Pacific and its low-cost arm HK Express reported higher passenger numbers in March despite the ongoing Middle East situation. The group attributed the growth to a series of mega-events in Hong Kong, such as Art Basel and the Hong Kong International Jewellery Show.

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Hong Kong International Airport expects revenue to grow by up to 10% this year despite disruptions from the Iran conflict, its CEO Vivian Cheung Kar-fay said. She aims to position the facility as an alternative aviation hub to the Middle East. The airport anticipates welcoming about 70 million passengers, up from 61 million last year.

Hong Kong's major retailers are using direct sourcing and economies of scale to avoid price hikes amid surging logistics costs from the Middle East war. Sa Sa International chairman Simon Kwok Siu-ming warns of pressure on petroleum-derived beauty products. Shipping and airfreight costs have risen 10 to 15 per cent.

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HK Electric will cut fuel surcharges for May, marking the second consecutive monthly drop, but has warned of significant rises later this year due to the Middle East conflict. The May fuel clause charge will fall by 4.4 HK cents per kWh to 26 HK cents per kWh.

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